Correlation Between Wireless Power and Lotte Chilsung
Can any of the company-specific risk be diversified away by investing in both Wireless Power and Lotte Chilsung at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wireless Power and Lotte Chilsung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wireless Power Amplifier and Lotte Chilsung Beverage, you can compare the effects of market volatilities on Wireless Power and Lotte Chilsung and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wireless Power with a short position of Lotte Chilsung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and Lotte Chilsung.
Diversification Opportunities for Wireless Power and Lotte Chilsung
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wireless and Lotte is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and Lotte Chilsung Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Chilsung Beverage and Wireless Power is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wireless Power Amplifier are associated (or correlated) with Lotte Chilsung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Chilsung Beverage has no effect on the direction of Wireless Power i.e., Wireless Power and Lotte Chilsung go up and down completely randomly.
Pair Corralation between Wireless Power and Lotte Chilsung
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 2.04 times more return on investment than Lotte Chilsung. However, Wireless Power is 2.04 times more volatile than Lotte Chilsung Beverage. It trades about 0.32 of its potential returns per unit of risk. Lotte Chilsung Beverage is currently generating about -0.33 per unit of risk. If you would invest 245,000 in Wireless Power Amplifier on October 16, 2024 and sell it today you would earn a total of 49,500 from holding Wireless Power Amplifier or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. Lotte Chilsung Beverage
Performance |
| Timeline |
| Wireless Power Amplifier |
| Lotte Chilsung Beverage |
Wireless Power and Lotte Chilsung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and Lotte Chilsung
The main advantage of trading using opposite Wireless Power and Lotte Chilsung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, Lotte Chilsung can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lotte Chilsung will offset losses from the drop in Lotte Chilsung's long position.| Wireless Power vs. Jeju Bank | Wireless Power vs. Miwon Chemicals Co | Wireless Power vs. BNK Financial Group | Wireless Power vs. Koryo Credit Information |
| Lotte Chilsung vs. Ssangyong Information Communication | Lotte Chilsung vs. Wireless Power Amplifier | Lotte Chilsung vs. ECSTELECOM Co | Lotte Chilsung vs. Daejung Chemicals Metals |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |